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Describe the purpose of an Event Study, explain what a Cumulative Average Residual (CAR) is, and discuss how we interpret the CAR in the preannouncement

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Describe the purpose of an "Event Study", explain what a Cumulative Average Residual (CAR) is, and discuss how we interpret the CAR in the preannouncement period, on the announcement date, and in the post announcement date. Be sure to indicate how to draw a conclusion with respect to the efficiency of the market in responding to the event being studied

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